Refinance Assisted living facility - Pensacola Florida

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Refinance Assisted living facility - Pensacola Florida

Michael Hamby
Flipper/Rehabber · Pensacola, FL · Member since 2015 · 220 posts · 99 votes

I have rehabbed and leased out a residential assisted living facility and need to pay back my private money lender. My DSCR lender just denied the refinance since the house is being used as a business. How do y'all finance these? Building is worth about $450,000 and rent amount is $3,500. The business is active been operating since Dec 2023. Pensacola Florida

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Nate HerndonPro Member
Lender · Springfield, MO · Member since 2023 · 277 posts · 195 votes
2y

@Michael Hamby I would utilize a program that only looks for the property to be leased (regardless of use) and does not have a DSCR requirement for loans under $500k. How much do you owe on the house?

[email protected]417-605-2196
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  • Nate HerndonPro Member
    Lender · Springfield, MO · Member since 2023 · 277 posts · 195 votes
    2y

    @Michael Hamby I would utilize a program that only looks for the property to be leased (regardless of use) and does not have a DSCR requirement for loans under $500k. How much do you owe on the house?

    [email protected]417-605-2196
    1Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 664 votes
    2y

    They're are nnn/ business lease DSCR specific loan programs out there. You just need the right lender. Happy to connect. This should be no issue at all.

    [email protected]860-538-3672
    ProAlpha Capital56 Reviews
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    1Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y

    Which lender was this? 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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  • Scott WolfPro Member
    Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 956 votes
    2y
    Quote from @Michael Hamby:

    I have rehabbed and leased out a residential assisted living facility and need to pay back my private money lender. My DSCR lender just denied the refinance since the house is being used as a business. How do y'all finance these? Building is worth about $450,000 and rent amount is $3,500. The business is active been operating since Dec 2023. Pensacola Florida

    Local bank/ credit union will probably be your best bet, or a commercial mortgage broker.  What's the loan amount you're looking to payoff?
    1Reply
  • Matt Jones
    Real Estate Agent · Pensacola, FL · Member since 2014 · 379 posts · 307 votes
    2y

    I'll second local bank/credit union.  I have a few good contacts at local banks for commercial loans so if you need recommendations shoot me a message.

    Negative: You may find shorter amortization periods with a commercial bank loan so you may want to explore other DSCR type options first if that would mess up your numbers.

    Positive: Typically your local banks work well with this and various types of asset and have more decision making freedom.  Also, none that I've used have a pre-payment penalty to worry about.

    1Reply
  • Michael Hamby
    OP
    Flipper/Rehabber · Pensacola, FL · Member since 2015 · 220 posts · 99 votes
    2y
    Quote from @Devin Peterson:

    They're are nnn/ business lease DSCR specific loan programs out there. You just need the right lender. Happy to connect. This should be no issue at all.


     That's great news thank you!

    0Reply
  • Michael Hamby
    OP
    Flipper/Rehabber · Pensacola, FL · Member since 2015 · 220 posts · 99 votes
    2y
    Quote from @Erik Estrada:

    Which lender was this? 


     Certain lending.  They have been great to work with on standard single family rentals but I didn't realize this was a different type of loan.

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  • Michael Hamby
    OP
    Flipper/Rehabber · Pensacola, FL · Member since 2015 · 220 posts · 99 votes
    2y
    Quote from @Scott Wolf:
    Quote from @Michael Hamby:

    I have rehabbed and leased out a residential assisted living facility and need to pay back my private money lender. My DSCR lender just denied the refinance since the house is being used as a business. How do y'all finance these? Building is worth about $450,000 and rent amount is $3,500. The business is active been operating since Dec 2023. Pensacola Florida

    Local bank/ credit union will probably be your best bet, or a commercial mortgage broker.  What's the loan amount you're looking to payoff?

     I need to payoff around $280,000

    1Reply
  • Michael Hamby
    OP
    Flipper/Rehabber · Pensacola, FL · Member since 2015 · 220 posts · 99 votes
    2y
    Quote from @Matt Jones:

    I'll second local bank/credit union.  I have a few good contacts at local banks for commercial loans so if you need recommendations shoot me a message.

    Negative: You may find shorter amortization periods with a commercial bank loan so you may want to explore other DSCR type options first if that would mess up your numbers.

    Positive: Typically your local banks work well with this and various types of asset and have more decision making freedom.  Also, none that I've used have a pre-payment penalty to worry about.


     THanks matt and good catching up with you!

    0Reply
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